(MENAFN- ProactiveInvestors) ’s ( TSX:TPL) new board has spelt out its plan to close what it said was a significant value gap between the share price and assets of the business.
John Bell new exectuvie chairman said it has already started to streamline its operations to save costs in all key G&A areas.
The total for G&A capitalised corporate costs and Business Development will fall to US$15mln in 2015 from approximately S$23 mln in 2014 while offices in Dubai Washington and Toronto are to close.
In Kazakhstan Tethys is currently producing oil and gas comprising approximately 2400 barrels of oil per day (bopd) and 260 thousand cubic metres per day (mcm/day) of gas.
SinoHan’s offer to purchase 50% plus one share of the company's Kazakhstan assets is expected to complete in the first quarter of 2015.
On completion Tethys will receive approximately US$71mln million in cash with SinoHan also obligated to fund the first US$9mln (of the forward work programme.
“The SinoHan transaction alone values the Kazakhstan assets at US$150 mln (plus upside potential bonuses); this equates to 27p a share (CDN$0.48) as compared to the current share price of 14p (CDN$0.26).”
In Tajikstan the group is in partnership with Total and CNPC on the huge Boktar development.
“This project will require significant additional capital over the next few years and the board will ensure that the Company retains a material interest in this project at the same time as ensuring it is financed in the most optimal way.
“The board believes that we can farm down part of this interest in order to receive immediate consideration and also to offset part of this large funding requirement going forward.”
In Georgia Tethys is in discussions with partner Georgian Oil and Gas to offset its current funding obligations of approximately US$5mln through reducing its interest.
Shares rose 6% to 29.01p.
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